LKQ Corporation, provider of alternative and specialty parts to repair and accessorize automobiles, announced that S&P Global Ratings (“S&P”) raised the Company’s issuer credit rating to an investment grade rating of ‘BBB-‘ from ‘BB+’. Additionally, S&P raised the Company’s issuer-level rating on its unsecured debt to ‘BBB-‘ from ‘BB+’. S&P’s rating outlook for LKQ Corporation is stable.
“Achieving investment grade status with S&P is further validation of our Operational Excellence program that we launched in 2019. The success of this program has supported our ability to deliver record financial results under difficult conditions, strengthen our balance sheet and execute a disciplined capital allocation strategy,” said Varun Laroyia, executive vice president and chief financial officer. “The immediate implication of the upgrade is that collateral requirements fall off our senior secured revolving credit facility. With this upgraded rating, we expect the Company over time to continue to drive higher levels of free cash flow to invest in growing our business and returning capital to stockholders.”